In a scam popping up in a handful of cities, bad guys are picking up homeless people and paying them $50 to $100 to take out cell phone contracts and get subsidized phones -- where a phone worth $600 can cost around $100 upfront.

Once the perpetrators get the new phones, they drop off the homeless victims and sell the phones on the black market.

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But it doesn't stop there. The phones are registered in the names of the homeless victims, who then rack up hundreds or thousands of dollars in bills. Plus, their credit gets destroyed.